accounting for uncollectible accounts using the allowance and reporting accounts rec 643848

Jan 1

Performed cleaning services for Debbie’s D list for $8,000 on terms 3/10, n/20.

3

Shine King decides to adopt the allowance method. Uncollectible account expense is estimated at

2% of credit sales.

10

Borrowed money from North Spot Bank, $10,000, 7% for 180 days.

12

After discussions with Pierre’s Wig Stand, Shine King has determined that $225 of the receivable

owed will not be collected. Write off this portion of the receivable.

15

Sold goods to Watertown for $4,000 on terms 4/10, n/30. Cost of goods sold was $600.

15

Recorded uncollectible account expense estimate for Watertown sale.

28

Sold goods to Bridget, Inc., for cash of $1,200 (cost $280).

28

Collected from Pierre’s Wig Stand $225 of receivable previously written off. Reinstated the

remaining balance of Pierre’s receivable.

29

Paid cash for utilities of $350.

31

Created an aging schedule for Shine King for accounts receivable. Shine King determined that

accounts 1–20 days old were 2% uncollectible and accounts over 20 days old were 15%

uncollectible. Prepared an aging schedule and adjusted the Allowance for uncollectible

accounts to the aging schedule.

31

Shine King prepared all other adjusting entries necessary for January.